Allergan, Actavis talk merger while Valeant gets the cold shoulder

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Dive Brief:

As it continues to stave off the $54 billion hostile takeover bid from Valeant, Allergan is in active talks with Activis regarding a potential merger.

Allergan feels that Valeant's offer is insufficient, and things have gotten dicey as shareholders prepare to vote on board changes as a route to facilitate the merger. With activist investor Bill Ackman leading the way as a top investor, Valeant is still trying to acquire Allergan.

For Dublin-based Actavis, best known for its generics and its AD drug, Namenda (memantine), acquisitions are an important part of its growth strategy.

Dive Insight:

Merger mania continues as deals blow hot and cold. Right now, things seem hot between Actavis and Allergan, and it is fairly clear that Actavis would never attempt a hostile takeover.

Actavis isn't just looking at Allergan, but also Salix Pharmaceuticals, which specializes in gastrointestinal drugs. For its part, Valeant continues to circle the Botox-maker like a shark going after fresh kill. On December 18, Allergan shareholders, including Bill Ackman, who is aligned with Valeant and owns 10% of Allergan's stock, will vote on changes to the Board of Directors. The outcome will provide a glimpse into how things will pan out for both companies in 2015.